A borrower is purchasing a property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest and 1 point and the second is a 95% loan for 25 years at 9.25% interest and 1 point. Assuming the loan will be held to maturity, what is the incremental cost of borrowing the extra money? Selected Answer: Correct 13.66%

a.13.66%

b.12.01%

c.13.50%

d.14.34%

Please show how it is 13.66%, I keep getting 13.50%.